Spike In S&P 500 Futures: CFTC Has A Duty To Investigate This Suspected Manipulation

There’s some interesting parallels between the graph below and the picture above. You can use your imagination to think about them. Even the shape of the “spike” (finger).

One thing that investors need to have is belief in the level of credibility of the financial markets. The above chart is the chart of the S&P 500 futures contract. The Federal Government needs to look into who or what caused the market to spike that much in such a short amount of time. If one player or a group of players are able to spike the markets that much on demand; if the markets are trading that thinly and are open to manipulation and/or control, then one has to question whether or not it makes sense to play in these markets. It’s obvious that a huge hedge fund came in with a large flurry of buy orders - perhaps shorting the markets at the top.

I think that investors are entitled to an explanation. Who or what entity drove the markets higher in the last 10 minutes of trading. When the markets were going down, the Federal Government was looking to HANG short sellers. However, this type of manipulation is OK because the direction is UP and not DOWN. How pathetic. These markets are truly becoming a joke. Time to take up fishing!
Copy of email I sent to enforcement@cftc.gov:

Dear Sirs

One of the things that makes our capital markets great is transparency. Today there was a huge spike in the last 10min of trading activity in the ES mini contract. The contract price and volume spiked from 905-928 in a very short amount of time 5-10min. There was obviously some form of manipulation taking place during this period. I feel that the CFTC has a duty to investigate this type of manipulation or suspected manipulation and report their findings to the public. Investors believe that these markets are somewhat efficient and are liquid enough that one person or group is not able to exert enough buying or selling pressure to control the price movement to such a large degree. Today certainly made investors question that statement. Are markets truly liquid enough? If so, then who or what caused that end of day spike. I think that your failure or un-willingness to investigate and report on this movement throws the viability of the capital markets into question. Certainly when the markets where headed higher - shortsellers were questioned and blamed - Shouldn’t the same hold when the market is moving higher?

Thanks for your time and attention. I look forward to hearing more about the results of your investigation into today’s spike.

Sincerely, D. L. Spurr

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Comment by Jake

2009-05-30 13:09:08

Give me a break do you really want Obama setting rules on stock market trades.Whos to say its not our own government trying make the illusion the market is on the rebound ,or unreliable.The point is if you think its a trap then go buy a bond.Obama is selling alot of them from what I heard.

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Comment by Kiwi

2009-05-30 14:31:41

Some Forex pairs also shot past 50% retracement on Friday.
Forex prices are controlled by the Tier One banks that act as exchanges so you expect them to move prices against the market.
Exageration is normal in forex but April has been strange even by Forex standards with USD and Yen taking turns to make uncharacteristic slides to inflate major prices.
Given that Forex banks are in the business of price manipulation and that forex prices outpace equity prices, you need look no further than those banks for your culprit.
Normally the extreme bullishness goes before the big fall but a month of high flat prices is another warning sign of a crash.
I have given up trying to forecast prices, they go where the banks send them now. Traders have been short since March not long.
Why does AUD race past 80c on a day when Japan negotiates a 33% reduction in iron prices and China says the cut is not deep enough? BHP prices and AUD should have plunged on the news which is dire for Aus economy.

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Comment by Kiwi

2009-05-30 17:19:41

The Aus stock market went up 2% on Friday, matching the high for the week. That is as unnatural as it gets.

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Comment by mario cavolo

2009-05-31 04:24:07

you don’t already realize the markets are being manipulated?? Wake up man!!!! No offense….Mario

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Comment by Kiwi

2009-05-31 05:00:43

There is an interesting article on http://market-ticker.denninger.net/ titled “What was that?”.
Seems an exceptionally large order came through just inside or just outside the closing bell, 5,000 emini contracts?
Big money, just not clear if they got the timing just right or oh damn…

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